Call money
Call rates held rangeboundd on Friday. Opening the day at 9.70-9.80%, unchanged from its previous close, call rates moved up as some banks were covering their reserves position, coupled with the absence of major lending banks. The intra-day high was seen at 9.85%. However, later, call rates reversed its upward trend and eased a bit on improved liquidity and reduced demand. Call rates declined to its intra-day low at 9.25%. At close, call rates quoted around at 9.50% levels, down from its previous close of 9.70-9.80%. "The market witnessed some improved sentiment with banks funding in call market as the rally in gilt market eased. The Reserve Bank of India (RBI) accepted two bids for a nominal amount of Rs 400 crore for its reverse-repos auction. The RBI, today, after a long gap, accepted only a single bid for Rs 4,500 crore in its repos-auction at 8%.FORECAST: Call rates seen at 10% levels on Saturday.
Spot dollar
The rupee held rocksteady on Friday. Opening at 46.40/4050 from its previous close of 46.3950/4050, the rupee showed some sign of appreciation in early trades on sustained dollar inflows from foreign funds and exporters and firmed up to its intra-day high at 46.3850. "State-run banks seen mopping the dollar to prevent its further appreciation", a dealer said. At close, the rupee quoted at 46.40/41, half paise lower from its previous close at 46.3950/4050. "There have been dollar supplies in the market and the demand continues to be low, mainly due to the fact that most corporates feel that the rupee is likely to be stable in the near future", a dealer said. Meanwhile, the RBI fixed its reference rate for dollar at 46.41, as against its previous fix of 46.40. In cross-currency trades, rupee closed nine paise stronger against the euro at 43.69, while rupee eased by eight paise agaisnt the pound-sterling to 68.56.
FORECAST: Rupee seen appreciating marginally on Monday.
Forward premiums
Forward premiums moved down on Friday. "Forward market witnessed good activity and premiums fell sharply on heavy receivings by state-run banks and forign banks against the back of easy call rates", a dealer said. Call rates ruled between 9.25% and 9.85% during the trades and ended around at 9.50% levels. The six-month and one-year annualisd premia closed sharply lower at 4.52% and 4.63% as compared to 4.79% and 4.77% of the previous day. Cash/spot and cash/tom premium ended at 2.25/2.50 paise and 1.60/1.75 paise respectively. Rupee ruled steady and ended at 46.40/41. The near premiums in forward market declined by 4-5 paise while those in far forwards fell by 8-9 paise.February dollar traded at 10/12 paise while in far forwards, June dollar traded at 80/81 paise with July dollar at 98/100 paise and Decemebr dollar at 189/192 paise.
FORECAST: Forward premiums seen easing a bit on Monday.
Gilts
Bond prices movedd down on Friday. "The large outflow at the RBI's repos-auction caused a change in the liquidity outlook, leading to volatality in the gilts market", a dealer said. Bond prices fell in the erly trades but recovered after the repos reults. However the prices movedd down at the end of the trades. The 10-year yield remained unchanged at 10.46% from Thursday's levels. The 11.30% 2010 paper seen at Rs 105.2650, while the 11.40% 2008 at Rs 106.08. The RBI accepted two bids for a nominal amount of Rs 400 crore in its reverse-repos auction, while accepted one bid for Rs 4,500 crore in its repos-auction at 8%. On the NSE's wholesale debt segment, trades worth Rs 1,985.03 crore were seen. Trades worth Rs 390 crore were seen at 11.30% 2010 paper, while those in the 11.40% 2008 and 11.03% 2012 traded at Rs 370 crore and 175 crore respectively.
FORECAST: Bond prices seen gaining on Friday.
(Compiled by Atmadip Ray)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
